financial aid and rants and raves

I have so many thoughts and themes floating around my head I have no clue how to begin this entry. Few people like reading a laundry list, but I'm stuck otherwise. With all apologies, here we go.

1) As mention, my brother and I have been discussing buying a place (Middletown, NY seems to be the consensus location) . However, the timing never seemed to be right: property prices were too high, rent to purchase ratios were way out of whack, neither Karl nor I had money, etc. All of the above reasons were a blessing though; they gave Karl and I time to prepare for this purchase and the subsequent responsibilities. The preparation was simple: learn everything you can about the business, learn something about home repair (with Karl and I having set areas for expertise: plumbing for Karl, woodwork and drywalling for myself, etc.) I was to learn as much as I could read, with my friends in real estate assisting us in both finding and purchasing the place, etc. Well, it's been a while since we started discussing these things, and we've made no headway. Karl and I have different processing, and Karl ruminates on a purchase much longer than I do. Still, I'd hoped to have some of the preliminary work done, such as going to Home Depot for their free home improvement lessons, or attending similar classes here at the college under Cont. Ed. Admittedly, I have done only the research portion myself, but I have learned an enormous amount. In terms of this progress and preparation, this winter will be telling. The time is not quite right to purchase a place yet, with property values dropping thorough '08 into '09. I give us one year or so before the bottom hits. It may be even further off, and I'll re-evaluate before making a purchase. If we haven't made any progress in the above areas, I'll consider the plan dead and move on to perhaps buying a place in the Poconos with my dad. My other responsibilities are also worthy of mention, as I'm doing so poorly in meeting them: paying down my debts, especially my car and CC's. TIAA-CREF is also important, since I can access my plan for a down payment even if there's a credit crunch. I'll expand on this more later.

2) Continuing the vein of moving myself forward and improving my eventual lot, I'm considering registering for classes for the Summer '08 term at Empire . It's too late for Spring classes, so my procrastination wins again. I'm questioning the need for further education, and I've said in the past my education is, for better or worse, complete. Still, I would like to apply for promotion, and I still need 7 credits to qualify. This represents the only legitimate reason to return to school. The others are as follows: 1) I could access a little extra student loan money and pay.... some school expenses. Using student loans for reasons than "legitimate educational expenses" is illegal, although the above term is deliberately broad and can include many costs. Using the proceeds to provide a down payment for a house in the Poconos is still off limits. 2) When the economy turns sour, people flock to education like moths to a flame. As per Tim Ferriss, it creates the illusion of forward motion. This is not to say that some people do not need to improve their skills or go back to school when they lose their jobs, but I cannot count myself among them.

3) The business, Brian Joseph Assoc., (and I type with an air of indignation and disgust) is dead in the water. Along with the dawning reality that Karl and I may not buy anything, I understand now that not only was the "business" and painful and pointless exercise, there was no way it would get off the ground anyway. First, I do not have the business owner mindset. I've finally figured this out via the innumerable (and expensive) materials I've collected over the last few years. Michael Gerber, of E-Myth Worldwide, calls it the entrepreneurial mindset versus the technician, who merely wants to have a job with himself as the boss. I was never planning on any side venture being all that big, but I don't even have the time or gumption to begin the "muse creation" as described by Tim Ferriss in the "4 Hour Work Week." Even if I did have the needed discipline and drive, I'd still be vexed by what exactly I'd be selling or why. Both Ferriss and Gerber have similar answers: it really wouldn't matter. Setting up a viable business model is what counts, not the product itself. If you set up the venture correctly, the product will present itself. The two authors would diverge at this point, as the reasons for creating a business are different for each writer. Both wish to add value to the world, increase your bottom line, and expand your free time, but the difference is how you do it.

4) The under current to any of the above economic activities is the gnawing feeling that America is in for a rough patch financially. Cheap and easy credit have disappeared, and the dollar is tanking. The weak dollar has it's advantages, as our exports are cheaper. One could even call it stealth trade protectionism, as our exports are cheaper and imports are more expensive. We may be giving the Fed too much credit (hah!) by stating that was there diabolical plan, but it is the case. Getting one's money out of the country is probably the wisest plan, and I know a few friends who would agree. I understand their apprehension, and even agree with much of the doom saying available at the Daily Reckoning . The difference is this: I have no method of avoiding this blast wave. Also, I have no money to lose. If my TIAA-CREF tanks, it will make up it's value over time. Also, I still have my donations from the college and my paycheck. I cannot be laid off, and as I mentioned above, people flock to college when the economy implodes. I simply need to ride out this storm, and I'm not certain there's a safe place to hide anyway.

5) I can't tell the future, if I could, I wouldn't be where I am today. That could be both good and bad. Still, the omens, portents, signs, etc. do not bode well for the USA. What bugs me is that I have all this knowledge, but no method to take advantage of the situation - AGAIN. This galls me. Such is the story of my life, and another chapter with the same themes is being written. I need to remember the following: we're all fucked. (Maybe..) As per the Daily Reckoning, the winners of his era will be those who lose the least. In this one point I am ahead of the curve. So long as the tax benefits regarding property remain unchanged, I'm in clover. Even if the value of my co-op lost an additional 20%, I've lost a whopping 13,500. This is before the tax benefits are realized. Strange is the benefit of this tiny co-op to my bottom line. True, the apartment is one of the reasons I can't blow town, but could I really vacate anyway? Not really, so while my place is an anchor, it also prevents me from being driven out of a safe port; this is, after all, an anchor's job. So I count myself as one of the lucky ones. I could have gotten into a mortgage and a home I could not afford. Instead the living is easy, and my place is safe and warm, complete with a psycho kitty for company.

# posted by brian @ 11:31 AM